ABI: Consumers will benefit from the right reforms to financial advice

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Tuesday, 23, Sep 2008 12:00

The ABI (Association of British Insurers) has today published its response to the FSA’s interim feedback statement on the Retail Distribution Review. If the right outcome is reached, the RDR should lead to a real improvement in the way customers access and pay for financial advice.

Stephen Haddrill, the ABI’s Director General, said:

“We have a great opportunity to improve financial advice for those who currently use it, and to widen access to customers who currently do not get it. Improving access to advice, and raising confidence in those who give it, will get more people saving for the long-term, protecting their finances and securing the best value income in retirement.

“The FSA is on the right track with its proposals for clearer payment structures for advisers, and increased professionalism. But it must rethink its ideas on who will be authorised to provide financial advice. We believe that all suitably professional and transparently remunerated advisers should be allowed to provide advice and give product recommendations – not just those who offer products from the whole market. We must not risk reducing consumer access to high quality advice by restricting its supply.

“We could be on the verge of a revolution in the delivery of financial advice and products to consumers. Ultimately, this will benefit everyone, most importantly consumers. It is crucial that the FSA take the right decisions now, to ensure these reforms really work.”

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Notes for Editors

1. Enquiries to:

Jonathan French 020 7216 7392 (Mobile: 07958 330 480)

Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)

Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)

Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)

2. Delivering Reform in the Retail Distribution of Investment Products, the ABI’s response to the FSA’s interim feedback statement on the Retail Distribution Review, is available on the ABI web site, www.abi.org.uk.

3. The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK’s capital. They are the risk managers of the UK’s economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings and investment matters.

4. An ISDN line is available for broadcasts.

Copies of all ABI news releases, together with other information from the Association, can be seen on our website www.abi.org.uk.